Bank liquidity risk is anticipated to decrease in the current financial year as the difference between credit and deposit growth narrows. Economists suggest that savers are increasingly likely to prioritize bank deposits over market investments, driven by ongoing geopolitical concerns and market volatility.
This preference shift is expected to foster improved deposit growth, potentially further boosted by interest rate hikes. However, economists caution that this movement towards bank deposits could result in a deceleration of credit delivery within the financial system.
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